Rick Wilkinson17 Aug 2012

Energy ForumArmidale:

Natural gas from coal

Australia: abundant gas reserves

0

50

100

150

200

250

1996 1998 2000 2002 2004 2006 2008 2010P

J p

a

Australian CSG Production 1996 to 2011

Qld NSW

Source: EnergyQuest, February 2012

CSG is the fastest growing source of energy in Eastern Australia

East Australia 2P reserves = 49,655 PJ

Queensland CSG39,453 PJ

Conventional Gas7,375PJ

New South Wales CSG2,872 PJ

Global Perspective: Gas reserves and prices

3

Unconventional gas has had a major impact on the US gas industry

Key 2011 CSG statistics by state

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NSW Queensland

Number of CSG wells 249 3,261

Water produced in 2011 (GL)

0.2 15.8

Water monitoring bores 60 626

Signed land access agreements

112 2,459

Formal disputes of access agreements

0 0

Employees (Direct and Contracted)

249 11,864

Community engagement events

177 366

Community contributions $305,000 $52,781,000

Source: APPEA member companies

More than just finding resources…

CSG Industry

Shareholders

Landholders

Activists

Government

Communities

• Stop fossil fuels• Occupy Wall Street• Increase funding

• Overlapping interests• Water security• Value capture

• Value capture• Risk management• Capital allocation• Superannuation

• Economic growth• Risk management• Regulation• Mandate

and re-election

• Change management• Prosperity and sustainability• Improved infrastructure

CSG and the land

CSGThen

CSGNow

The Berwyndale field in the Surat Basin has been developed more recently, and demonstrates how CSG proponents work closely with landholders to optimise the layout of infrastructure to minimise the impact on their farm productivity.

Lauren field in the Surat Basin was developed the way it was, during the drought years, in a manner that fitted both the landholder and the CSG company at the time.

Well site at Brawboy, Gunnedah Basin, NSW

Core hole site and rehabilitation

Qld NSW Texas

Area (‘000 sq Km) 1,731 802 696

Gross Farm Product* ($Bn) 9.1 8.3 9.7

Petroleum Wells 7,000 249 218,556

A Case Study: Wells and Agriculture

*Source: ABS 1367.0 State and Terr Stat Indicators for 2009/10; 2009 Texas Agriculture Statistics, USDA

Water Utilisation: The Great Artesian BasinW

ater

Vol

ume

(Gig

alitr

es p

a)

881

616

91

Source: GAB Coordinating Committee (2010) http://www.gabcc.org.au ; CSG industry 30 yr ave

GAB Total Storage:64,900,000 GL

2011 Actual = 16 GL

Beneficial use of produced water